To loud applause, the US leader also urged legislators to pass a bill making tax cuts permanent and urged congress to pass free-trade deals with Colombia, Panama and South Korea.

Democrats have opposed the deal with Colombia over its record on human rights and trade union organisation.

Bush's seventh State of the Union speech was a chance to set the tone for his final months in office and try to salvage his legacy before he leaves office in January 2009.

But Al Jazeera's Rob Reynolds said that was not clear if people were listening to his message in the midst of heated campaign for the Democratic and Republican presidential nominations.

"Bush's approval rating is lower than ever and the country's attention is firmly fixed on the presidential campaign. America, it seems, is looking beyond Bush and looking forward to the end of his era."